India’s Infosys bets big on Israeli Start Ups

After purchasing Israel's Panaya, the Indian tech giant wants more locally-produced tech
Offices of Indian tech giant Infosys in Pune, India (Photo credit: Courtesy)
Offices of Indian tech giant Infosys in Pune, India (Photo credit: Courtesy)

India’s software giant Infosys plans to invest $125 million in start up ventures in Silicon Valley, India and Israel. The company is in talks with a few Venture Capital firms including US based Andreessen Horowitz.

Infosys, a global leader in IT-consulting and outsourcing, is on the lookout for promising innovations that would give the company an edge over other global competitors. The company reported a revenue of $8.25 billion in 2014 and shored up its existing start up fund to $500 million.

The Indian IT-giant is no stranger to Israel’s start up ecosystem. In February 2015 Infosys announced the acquisitions of Panaya, an Israeli automation technology provider for estimated $200 million.

In recent times the company has focused on providing customised solutions for multinational clients in mobility, big data, and cloud computing.

Infosys is not the only Indian technology firm to have set up a separate start-up investment fund. The rival Wipro too has set up a Venture Capital arm with a war-chest of $100 million.

Besides IT companies India’s Industrial corporations are also increasingly looking to Israel for their innovation and technology needs. India’s Tata Group is the lead investor in Tel Aviv University’s Technology Innovation Momentum Fund worth $20 million. The fund helps promising academic research translate into licencing opportunity for the industry.

With multi-million dollar acquisitions and investments Indian companies hope to tap into Israel’s flourishing innovation and start up ecosystem.

About the Author
Vijeta Uniyal is an Indian journalist based in Europe. He is Contributing Editor for the Commentator and Senior Distinguished Fellow at New York-based Gatestone Institute. He graduated from the Jawaharlal Nehru University (New Delhi) and worked for more than 10 years in international organisations, including German Foreign Office, German Minister for Economics and Technology, Goethe Institute and Humboldt Foundation.
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